Question

Please refer to the following exercise to demonstrate the above objectives. In addition, please show your calculations in the threads and assist others who may have challenges by discussing your analysis and calculations; On March 31, 2045, the balances of the accounts appearing in the ledger of Lange Daughters Inc. are as follows: Administrative Expenses $ 950,000 Inventory $ 800,000 Accumulated Dep. - Building 4,000,000 Notes Payable 900,000 Building 19,000,000 Office Supplies 50,000 Common Stock 1,000,000 Retained Earnings 12,365,000 Cash 2,970,000 Sales 17,850,000 Cost of Goods Sold 10,350,000 Selling Expenses 1,650,000 Dividends 200,000 Store Supplies 150,000 Interest Expense 45,000 Prepare a multiple-step income statement for the year ended March 31, 20Y5.

Answer 1

Note: Store supplies and office supplies are considered to be assets.

Lange Daughters Inc Multi step income statement For the year ending March 31st, 2045 Sales Cost of good sold Gross profit 17,850,000.00 10,350,000.00 28,200,000.00 Operating expenses Selling expenses Administrative expenses Total operating expenses 1,650,000.00 950,000.00 2,600,000.00 Operating income 25,600,000.00 Non operating expenses Interest expense 45,000.00 Net income 25,555,000.00

Same excel pasted below.

Lange Daughters Inc
Multi step income statement
For the year ending March 31st, 20Y5
Sales	17,850,000.00
Cost of good sold	10,350,000.00
Gross profit	28,200,000.00
Operating expenses
Selling expenses	1,650,000.00
Administrative expenses	950,000.00
Total operating expenses	2,600,000.00
Operating income	25,600,000.00
Non operating expenses
Interest expense	45,000.00
Net income	25,555,000.00